When Evaluating the Effectiveness of a Client's Internal Controls with a Tolerable

question 4

Multiple Choice

When evaluating the effectiveness of a client's internal controls with a tolerable rate of deviation of 5 percent,the audit team determined the upper limit rate of deviation to be 4 percent.Based on this information,which of the following decisions would the audit team most likely make?

• A)Reduce the planned degree of reliance on internal controls.
• B)Increase the extent of further audit procedures.
• C)Rely on internal controls as planned.
• D)Expand the sample to examine additional applications of the control.

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Definitions:

Interdependent Self-Construal

A view of the self as part of a larger social network, where relationships and interconnectedness with others are emphasized.

China

A country in East Asia, known for its vast history, diverse culture, and as being one of the world's oldest civilizations.

Self-Presentation

The process by which individuals attempt to control the impressions others form of them, often through managing their own behavior, appearances, or information in social contexts.

Modesty

The quality of being humble or reserved in behavior, dress, and language.